Freddie Mac Announces Third $1 Billion Multifamily Securities Offering This Year, K-017

MCLEAN, Va., Feb. 27, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), which are multifamily mortgage-backed securities.  The company expects to offer approximately $1.1 billion in K Certificates ("K-017 Certificates"), which are expected to price the week of February 27, 2012, and settle on or about March 20, 2012. 

The K-017 Certificates will be offered to the market by a syndicate led by Barclays Capital Inc. and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Jefferies & Company, Inc. and Morgan Stanley & Co. LLC will serve as co-managers. The K-017 Certificates include two senior principal and interest classes, a senior interest only class and a junior interest only class.  Fitch, Inc. and DBRS, Inc. have been engaged to rate the three senior classes of K-017 Certificates, which are each expected to receive a rating of "AAA(sf)" and "AAA(sf)", respectively, subject to on-going monitoring.  

The K-017 Certificates are backed by 72 recently-originated multifamily mortgages, which are secured by 76 properties, and are guaranteed by Freddie Mac.  This is the third K Certificates offering this year. K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans. The certificates provide investors with stable cash flows, structured credit enhancement and the Freddie Mac guarantee. 

Freddie Mac also has a new online tool for investors and analysts, Multifamily Securities Investor Access. This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K Certificate performance.

The preliminary offering circular supplement relating to the K-017 Certificates can be found at http://www.freddiemac.com/mbs/data/k017oc.pdf.  A Freddie Mac multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data are available at FreddieMac.com.  This announcement is not an offer to sell any Freddie Mac securities.  Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on February 24, 2011, and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Securities Exchange Act of 1934, excluding any information "furnished" to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements.  A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2010 and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. www.FreddieMac.com

SOURCE Freddie Mac

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